Why Did The Government Deal With The Great Depression
In 1929 when the Labour party came to power, the government needed money as it was in debt and the Depression made it hard to borrow money. Therefore in order to cover spending the government made huge spending cuts but still could not pay the 1929 unemployment benefits without borrowing from USA.
In 1931 the National Government was set up to try and reduce unemployment rates. The first short term measure taken to help restore confidence in Britain was cutting the pay of people who worked for the governments by 10%. This was enforced in order to introduce public spending cuts. This method did not necessarily please the government’s employees for example teachers and the armed forces, as it was their pay that was being reduced. Another short-term
In 1931 the National Government was set up to try and reduce unemployment rates. The first short term measure taken to help restore confidence in Britain was cutting the pay of people who worked for the governments by 10%. This was enforced in order to introduce public spending cuts. This method did not necessarily please the government’s employees for example teachers and the armed forces, as it was their pay that was being reduced. Another short-term